Costly divorce looms as Packers split

In happier times ... James Packer and Erica Baxter, right, with Eddie McGuire and his wife Carla in 2004.
Photo: Fiona-Lee Quimby

by
Joe Aston | Jake Mitchell

James Packer and his wife Erica have separated and will file for divorce as the casino billionaire prepares to spend more time pursuing business interests in the United States.

Just one year after the birth of the couple’s third child and two months after completing a new $40 million-plus family home in the eastern Sydney suburb of Vaucluse, sources close to Mr Packer confirmed the split on Friday.

It is believed Mr Packer, who turns 46 on Sunday, insisted on a prenuptial agreement before marrying Ms Baxter, 36, but the details are unclear.

Mr Packer raised $261 million last month selling shareholdings in employment website SEEK and investment company Magellan Financial Group. It is understood some of the proceeds will be used to settle with Ms Baxter with the remainder invested in US online real estate classifieds business Zillow and Hollywood film production business RatPac Entertainment.

Mr Packer is expected to spend more time in the US. Sources close to the billionaire said he was keen to prove himself in the world’s largest economy.

Packers to spend more time – separately – in America

Ms Baxter and the couple’s three children, Emmanuelle, Jackson and Indigo, are believed to be already living in Los Angeles.

The relationship has not survived a turbulent 12 months for the Crown chairman. Mr Packer prevailed in a bitter battle with rival casino operator Echo Entertainment over his plans for a hotel and casino at Sydney’s Barangaroo development. Crown is also developing a casino resort in the Philippines and considering a move into Sri Lanka.

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Mr Packer shed 35 kilograms late last year after undergoing gastric bypass surgery in Los Angeles.

He married Erica Baxter, a singer and model, in a lavish wedding in the south of France in 2007.

Mr Packer’s wealth dropped to $3 billion during the global financial crisis, but has soared back to $6 billion in 2013 according to BRW richlist due in large part to a surge in the share price of his casino operator Crown Limited.

Mr Packer was previously married to model and fashion designer Jodhi Meares in 1999.

Erica Baxter was thought to be close with Kerry Packer

The full value of the divorce settlement with Ms Meares remains undisclosed, but has been estimated at about $10 million. The former bikini model walked away from the two-year marriage with a mulitmillion-dollar property portfolio and a fashion label.

Ms Meares’ apartment in the exclusive harbourside Sydney suburb of Point Piper was passed in at auction in June, on a $2 million vendor bid.

Ms Baxter has been described as likeable and was thought to be close with Mr Packer’s late father Kerry.

At the legendary media magnate’s funeral in Sydney in 2005, Erica stood alongside his widow Ros and daughter Gretel.

Baxter absent on James’ big day

In July, Ms Baxter was spotted in Los Angeles without Mr Packer.

She was also absent from last month’s high-profile Killing Fairfax book launch in Sydney. Mr Packer, who appears on the book cover along with Lachlan Murdoch, was joined by his mother Ros and sister Gretel.

Mr Murdoch was supported by his wife Sarah, who declared it ‘‘Lachlan’s big day’’.

Ms Baxter had known Mr Packer for some time before becoming romantically involved with him.

She attended his wedding to Ms Meares, who she later modelled swimwear for at Australian Fashion Week.

Mr Packer dated a string of models in his younger years. He famously called off his engagement to Kate Fischer just two months before they were due to marry, only to walk down the aisle with Ms Meares less than a year later at what was then billed as the ‘‘wedding of the decade’’.

One of the largest divorce settlements belongs to Rupert Murdoch when he split from his second wife of 32 years, Anna.

They divorced in June 1999 and settled on a figure that has been reported at being between $200 million and $1.7 billion.

Just 17 days later he married Wendi Deng aboard his yacht in New York Harbour. Mr Murdoch and Ms Deng announced they would divorce in June.